Note D - Advances on Contracts

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Advances to Contract Manufacturer [Text Block]

NOTE D

— ADVANCES ON CONTRACTS

Milestone Scientific has entered into fixed arrangements with a contract manufacturer to manufacture STA Instruments and handpieces,

CompuDent®

. The contract manufacturer bills Milestone Scientific as the work progresses and it is Milestone Scientific’s policy to record these billings as advances on contracts. These advances are reclassified into inventory when the contract manufacturer ships the product and title passes to Milestone Scientific. The balance of the advances as of

December

31,

2016

and

2015

are

$700,900

and

$1,215,128,

respectively. The advance is classified as current based on the estimated annual usage of the underlying inventory.